Macroeconomic Forum
Inflation, Deflation, Stagflation
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I made this video discussing wealth inequality and why workers are losing purchasing power relative to their productivity. Spoiler alert: inflation and corporate subsidies are very big factors. Watch the video and find out how government, not capitalism, is funneling money to the top at the expense of the poor and middle class. https://www.youtube.com/watch?v=rPh2MgNPL5s
Submitted by Loophole on 05/12/2014 11:07 -0500
I keep reading and hearing that the reason we aren't having more inflation now is that banks are keeping the money the Fed pays them for purchasing securities in their reserve accounts and not spending or investing it. So I wonder, where are the banks getting the trillions they are spending to purchase these securities in the first place, and why isn't this spending causing inflation?
(I have supposed the commercial banks are just creating the money themselves via fractional reserve banking using the Fed money in their reserves as the required reserves for this money creation.)
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